The government wage bill: Employment and compensation trends in South Africa

Abstract

This paper reviews government employment and compensation trends using data derived from the government's payroll. Employment levels and average pay grew strongly in the 2000s, but in the last decade, headcounts have stagnated or fallen, and increases in average pay have been moderate. The distribution of pay between government employees is compressed, especially when compared to income inequalities in society. The paper suggests attempts to reduce government's wage bill that rely on blunt, across-the-board measures will have their largest impact on core public services–basic education, healthcare and criminal justice–and are likely to erode the value of these services and the quality of service delivery.